What are the differences between MCEX and other exchanges?
- Traditional exchanges only allow companies to list, and primarily serve mature and technologically innovative ones. Traditional exchange traded products include stocks, funds, bonds and derivatives.
- MCEX caters to micro and small businesses by providing them with the perfect capital, where each listed entity is an individual shop and Daily Revenue Obligations (DROs) serve as the traded products.
- Not only can micro and small businesses obtain capital through MCEX to achieve rapid development, but they can also fulfill their dreams of being listed on an exchange.
- Brands can receive continuous capital through MCEX to fund new store openings while strengthening their brand, laying the foundations for a successful stock exchange listing in the future.
- Corporate brands already listed on a traditional stock exchange can still qualify for funding through MCEX to optimize their capital structure and increase shareholder value without diluting equity.
- MCEX provides micro and small businesses with international capital, gives investors direct exposure to the smallest unit of the economy and also supports China’s digitized payment infrastructure.
- MCEX is the only exchange outside of Mainland China that is Chinese yuan denominated, making an important contribution to the internationalization of the currency.
Requirements to list on MCEX
- Length of operation: At least 12 months since the first store opening.
- Scale of business: At least 10 operating stores, or total revenue of operating stores no less than 5 million yuan in the past 12 months.
- Revenue capacity: Good revenue level across operating stores, with no significant losses or risks of closure.
- Digitization level: Unified sales order system to fully control the store’s order history and revenue.
- Legal and compliance: No significant legal or compliance risks.
- Revenue capacity: Good revenue level across operating
stores, with no significant losses or risks of closure. - Legal and compliance: No significant legal or compliance
risks. - Remaining lease term: No less than 90 calendar days
remaining on the lease from the first day of revenue sharing.
How to list on MCEX?
Application Preparation (“Application”) – Prepare issuance
Submit application in accordance to MCEX guidelines.
Provide basic information on the business and evaluate anticipated revenue with use of MCEX’s tools.
Reach an agreement with Micro Connect’s Leadership Fund on investment plan.
Complete system docking and activate revenue sharing arrangements with MCEX.
Initial Issuance (“Initial Offering”) – Vetting store performance
MCEX’s mainland entity to represent Micro Connect Leadership Fund to sign agreement with the business before completing investment.
From the first day of revenue sharing, to complete no less than 90 days of store performance period (“Tracking Period”).
Compare estimated revenue with actual revenue.
Evaluate the effectiveness of system docking and revenue sharing.
Additional Issuance (“Additional Offering”) – Matching investors with stores
The chained brands choose specific stores for additional issuance from those who have completed the 90 days “tracking period”.
MCEX accepts the above proposal, proceeds with listing and matching with investors.
MCEX’s mainland entity to represent investors to sign agreement with stores selected for additional issuance before completing investment.
The same stores can obtain funds through multiple “Additional Offerings” to match its own capital needs.
What are the benefits of MCEX?
Fast Financing
No need for the hiring of many intermediary agencies. Initial Offering can be completed as fast as 1 month after application
submission.
No need to provide 3-years of performance data, only a 90-day tracking period is required to complete evaluation.
Stores that have completed the 90-day tracking period can participate in Additional Offerings at any time to quickly obtain funds.
Simple Issuance Structure
No need for complex restructuring. Various legal structures such as subsidiaries, branches, joint ventures and individual businesses are accepted.
No need to go through agreement process with each individual investor, only need to sign one agreement with MCEX’s mainland entity.
For joint ventures and its related matters after issuance, MCEX’s mainland entity can fully represent investors in decision making and execution.
Favorable Financing Plan
No need for complex restructuring. Various legal structures such as subsidiaries, branches, joint ventures and individual businesses are accepted.
No need to go through agreement process with each individual investor. Only need to sign one single agreement with MCEX’s mainland entity.
For joint ventures and its related matters after issuance, MCEX’s mainland entity can fully represent investors in decision making and execution.